Best Buy Co., Inc. has become the leading international specialty retailer of consumer electronics. In order to determine its success within the consumer electronics retail industry and the overall business industry, we have to dissect several factors associated with the firm's external environment, which include its macro environment and the industry environment and its competitors analyses, which identifies the firm’s threats and opportunities.
Within the macro environment, such factors include economic, demographic, political and legal, technological, socialcultural and global trends. Beginning with demographic and global trends, globalization, introducing one’s business internationally, has affected Best Buy by geographically distributing all over the world, especially developing countries. Best Buy, a company that was established in 1966, now has over 1,100 stores in the United States alone, which counts for 19% of the market. They also have a total of over 2,800 stores in Canada, Mexico, China, and Turkey and 2,414 European stores. Best Buy's acquisitions of the various brands have also been another factor contributing to their global awareness. In 2001, Best Buy acquired Future Shop Ltd., a leader in the electronics retail industry in Canada. Best Buy’s globalization continued in 2006 when they acquired 75% stake in Jiangsu Five Star Appliance. Ltd., that let them gain access to the Chinese retail market (Hoffman). Regarding other demographic and global factors within the external environment, China’s potential market growth is at 22%, the Middle East’s: 20%, and South America: 17%. The use of e-commerce also contributes to their global reach and success with the current and increasing age structure that involves internet users. Because of its convenience, more people have turned to online purchasing as a means to shop; some have become reliant. Income distribution is another factor in the demographic trend that currently raises a lot of... [continues]
Cite This Essay
(2012, 05). Best Buy Case Study. StudyMode.com. Retrieved 05, 2012, from http://www.studymode.com/course-notes/Best-Buy-Case-Study-996087.html
"Best Buy Case Study" StudyMode.com. 05 2012. 05 2012 <http://www.studymode.com/course-notes/Best-Buy-Case-Study-996087.html>.
"Best Buy Case Study." StudyMode.com. 05, 2012. Accessed 05, 2012. http://www.studymode.com/course-notes/Best-Buy-Case-Study-996087.html.